Kuwait’s Agility is having an impartial jury examine its work supplying food to US forces in Iraq and Kuwait.

Agility was indicted in November 2009 on allegations of overcharging the US army on a multi-billion dollar contract to supply food for troops in Kuwait, Iraq and Jordan.

On 16 August, Agility pleaded not guilty to the charges. The arraignment follows about 18 months of legal wrangling over whether Agility was properly served with indictment.

The next status conference is due to be held on 4 October.

Agility was formerly known as Public Warehousing Company or PWC.

“In bringing this case, the US Department of Justice has criminalised what is, at most, a civil contract dispute,” says a statement from Agility. “Agility, as it has stated for nearly two years, remains open to a resolution of the case, but its focus is now on bringing the facts to light before a jury.”

In April 2010, Dubai-based contracting company Anham replaced Agility as the supplier of food and services to the US military in the Gulf (MEED 19:4:10). The US Defense Logistics Agency extended Agility’s work on the food contract to 4 December 2010.

The loss of defence and government business led to Agility’s 57 per cent drop in net profit in the second quarter of 2011.